July 19, 2002

HSBC to acquire controlling stake in Bital

HSBC Holdings is planning to acquire a controlling stake in Mexico’s fifth-largest bank, Grupo Financerio Bital. Bital has 6 million customers and a market share of 12.5%. HSBC has already received an approval from Mexico’s National Banking and Securities Commission to go ahead with the due diligence process to decide on the offer.

Bital is keen to have a shareholder as it has to raise $550 million capital to meet the regulatory requirements. The bank, at present, has only $140 million of capital.

Bital is one of the two banks, in Mexico, that is not controlled by a foreign institution. Spain’s Santander Central Hispano has a total of 27% stake in the bank after purchasing 8.3% stake from Portugal’s Banco Comercial Portugues for $85 million.

Santander will have to inform the banking authorities in Mexico if it is interested to increase its stake in Bital. The Spanish has 14% share in Mexican banking market.

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